Lagos, Nigeria, February 19, 2013—IFC,
a member of the World Bank Group, today announced an investment in Nigeria-based
Indorama Eleme Fertilizer Company to support the expansion of the country’s
largest fertilizer production facility. The investment will contribute
to improved farm yields and agricultural productivity, which are critical
to Nigeria’s long-term food security. The investment also supports South-South
investment into Africa, as the Eleme’s parent company is Indorama, a long-time
IFC client based in Indonesia.
The total project cost is $1.2 billion, of which $800 million will be financed
by lenders. The total IFC financing package to Eleme amounts to $375 million.
IFC today signed a loan for $150 million, and mobilized another $75 million
through a syndicated B loan with the Bank of India. The IFC financing also
mobilized an additional $150 million in parallel loans from other development
Belgian Investment Company for Developing Countries, the Commonwealth Development
Corporation of the UK, Germany’s DEG, and FMO of the Netherlands.
Manish Mundra, Chief Executive Officer of Eleme, said, “IFC’s support
for this project has helped to provide direct financing and mobilize significantly
more to commence our fertilizer operations. With a growing population and
limited available arable land, fertilizers are increasingly important to
improving crop yield and food supply in Nigeria.”
Carsten Mueller, IFC Senior Manager for Manufacturing, Agribusiness, and
Services, said, “IFC’s investment in Indorama Eleme Fertilizer adds value
and makes use of existing natural resources, helping Nigeria expand its
manufacturing base while improving food security. Indorama has a proven
execution capacity for large-scale manufacturing operations and with our
long relationship and shared commitment to Nigeria’s development, we welcome
this new partnership to support further expansion in Africa.” IFC supported
Indorama in its premier investment in Nigeria through Indorama Eleme Petrochemicals
Company in 2007.
The project involves the construction and operation of a nitrogenous fertilizer
plant at the site of Eleme’s existing petrochemicals complex in Port Harcourt,
Nigeria. On completion, the facility will produce granulated urea that
will be sold domestically and abroad. The project will involve the development
of an 84-kilometer pipeline from the gas supplier’s facilities.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, mobilizing
capital in international financial markets, and providing advisory services
to businesses and governments. In FY12, our investments reached an all-time
high of more than $20 billion, leveraging the power of the private sector
to create jobs, spark innovation, and tackle the world’s most pressing
development challenges. For more information, visit www.ifc.org.